The EU food market is performing poorly. Low population growth, an increasing proportion of elderly people (who tend to consume less) and retailer price initiatives have all exerted downward pressure on market volumes and values. Meanwhile, consumption in North America and Asia Pacific is rising faster.Against this background, despite recent price rises, food has become relatively cheaper giving most consumers the ability to choose between many different types of convenience and added value products. One result is that food has taken on a more meaningful role in our lives.
Rather than just providing basic nutrition, we also expect our choices in the food we purchase to make a greater contribution, either to the environment (organics), the lives of others (Fairtrade and supporting local producers) or to ourselves (improved health, wellbeing and even beauty).
As volumes rise slowly, the key to success in this industry is the ability to identify where value can be added. One such sector is cardiovascular health.
Today, heart health products are just one of a series of "wellness" foods spanning digestive health, detoxification, immune health, dental, bone and joint health and mental health.
Other areas where food and drink are starting to make an impact include macular degeneration, prevention or delay of dementia and improvements in physical appearance (beauty and skincare). As yet, these are small markets but show the same, or better, levels of growth potential.
In total, the EU wellness market is currently calculated by RTS to be worth some Euro 12.8bn, of which gut health is the largest component, accounting for Euro 5.9bn. Heart health products were worth Euro 570M in consumer sales in 2007.
By comparison, the North American market for all wellness products was worth $9.6bn (Euro 7.6bn) in 2007 with the heart health sector worth some $685M (Euro 539M).
One of the main growth areas in the last five years has been the development of products containing cholesterol-reducing plant stanols. Pioneered by Benecol in fat spreads, stanol esters and sterols are now used in drinks, yoghurt and cheese. As well as Benecol the main European brands are Becel and Flora pro.activ from Unilever. Diets rich in soluble fibre (from psyllium or oats) have also been shown to reduce 'bad' LDL cholesterol levels.
Other ingredients claimed to be beneficial to the cardio-vascular system include nuts and seeds, soya, dairy peptides (systolic blood pressure lowering), tea catechins, garlic and blueberries (cholesterol reducing).
Health claims
As disease risk reduction claims have historically been prohibited in the EU, many of the products included in this analysis do not currently make hard claims on pack (although this will change in future as such claims are now permitted under article 14 of the Nutrition and Health Claims Regulation, provided they are supported by scientific dossiers and clinical research).
Likewise, while several applications have been filed by manufacturers wishing to make more generic claims about certain ingredients (soy protein, omega-3s, oats, etc.) under article 13 of the Regulation, the list of approved claims will not be published until January 2010.
While harmonised rules across Europe will in future provide some welcome clarity to manufacturers operating in multiple markets, the picture has historically been quite confused, with some Member States far stricter than others when it comes to health claims approvals.
As a result, many manufacturers have resorted to using vague statements on-pack or relied on consumer knowledge about certain ingredients to drive sales. Of course, the latter is not such a bad thing as there is currently plenty of media coverage on, and consumer interest in, general health and wellbeing.
However, not only does this make the whole sector seem as though it is built on shaky foundations, it also makes it difficult to define and measure.
Market size and growth
Given the above limitations and "vagueness" of the market, the global market for heart health food and drinks was worth an estimated Euro 1.5bn in 2007. Although this represents only a small proportion of all expenditure, consumer demand is clearly dynamic. The three key factors that stand out when analysing the sector are:
• How growth is considerably faster than for the market as a whole
• How diverse the heart health sector is becoming
• The value that heart health foods are adding.
As the total global food market is currently growing by only 2% per year in real terms the growth rate of 12% per year currently being enjoyed by the heart health food sector can be considered exceptional.
In terms of targeting this sector, the products contained within it are highly diverse, making it difficult to select a particular product type.
Originally, wellness foods were confined to either one-shot probiotic drinks or made by specialist producers. Today, wellness foods have expanded to compete in nearly all food and drink market sectors.
Drinks have seen particular success and growth, especially since the launch of Red Bull. For some reason it appears that consumers regard drinks as the most convenient way to enjoy various wellness benefits. Perhaps they still find the idea of food being "messed about" with off-putting. This could also go some way to explaining why the meals and meal-centres have remained small and been the least successful of the wellness food segments.
Product delivery segments where wellness foods have so far made a significant impact are soft drinks, dairy, spreads, baby and infant foods and cereals and baked goods.
As a guide, European consumers pay around Euro 2 or less per kilo for a branded margarine, whereas Becel pro.activ sells for around Euro 9 per kilo.
Like many other growth sectors in today's static market, the success of all types of wellness food and drink will be to the detriment of more traditional products.
For example, if a soya milk is chosen, this is likely to cannibalise the sale of cows' milk rather than expand milk sales overall. People will not necessarily eat more, but they will eat better. Although this transfer of loyalties will lead to increases in overall expenditure, it can also lead to consumers switching brands. So, brands not represented here could well lose sales to those that are.
The future for heart health
Wellness food is about getting the foods we would normally consume to work harder for our benefit.
They act as a type of insurance: they probably won't do us any harm but could do a lot of good. No one wants to be unhealthy, ill or die prematurely and wellness food and drink provide an easy way to achieve this, perhaps.
However, the sector is not without controversy. Heart disease is one of the worlds' biggest killers and the idea of consuming a product that reduces this risk is very attractive. The danger is that consumers may believe that eating a heart-healthy food negates the need to diet, exercise or take other precautionary measures.
Heart-healthy foods have been supported by numerous media articles and, as a consequence, consumer awareness has rocketed. Health and healthy foods always manage to achieve a considerable amount of interest from both the media and the consumer and awareness of the health benefits of ingredients such as probiotics, fibre, soya, cranberry, pomegranate and açai berries has grown significantly.
We can see elsewhere in the market that "health" is one of the key food trends. However, past attempts at creating more healthy foods have often been met with a negative consumer response as they seemed to be based on normal food with something taken away (low fat, low sugar, low calorie) and never tasted (or were thought to have tasted) as good as the original. They were therefore perceived as being "medicinal"
So far, heart health food and drink seem to have avoided this trap. Most of the products covered here are as good as, if not superior to, similar comparable foods.
This is especially true of juices and soft drinks where some very attractive and flavourful combinations have been created. Fat spreads with sterols and omega-3 taste as good as the originals and bread, breakfast cereals, cereal bars and soya yoghurts can be as attractive, if not more so, than their "ordinary" counterparts. Most products too are not "way out" and are reassuringly familiar in looks and taste.
However, the data indicates that some product types are more successful vehicles for health than others.
Market drivers can be looked at in five distinct ways:
• By specific product delivery type (eg. one-shot drinks, spreads, milk and flavoured milk, yoghurt, cheese, bread, breakfast cereals/bars, teas and infusions, juices and smoothies)
• By ingredient (eg. fibre, omega-3, sterols, soya)
• By occasion (eg. breakfast, snack, lunchbox, anytime)
• By attractiveness and suitability (eg. taste, format, efficacy)
• By consumer type/lifestage (eg. growing children, middle-aged, growing older, keeping fit).
Attractiveness and suitability
The most successful products so far are those that can fit in with any lifestyle or busy schedules. This is believed to be why spreads, dairy and drinks have so far led the way. Therefore, attractiveness and suitability factors include:
• Flexibility (to fit easily into the day and into a normal diet)
• To look and taste like ordinary good food, rather than "medicinal" foods
• To provide a clear message as to what the product contains to make it special
• To ensure that consumer awareness is up to speed with the claims made
• If the product can combine two benefits, eg. low fat and low cholesterol, so much the better
• Image - to look and be modern.
Although mainly focused on middle-aged or older consumers, most of the population is a suitable target for heart health foods:
• Babies and infants (developing a healthy heart)
• Growing children
• Students
• The whole family
• Busy people
• Those concerned about their health, either temporarily or continuously
• Working lunchers
• Hectic social life
• Those concerned about growing older.
As can be seen, most people will at one time or another, fit into a target group. Therefore, the potential for heart health foods could be high.
Alongside this, consumers also have rising expectations of the constant availability of a wide choice of high-quality foods of all kinds to fit into their increasingly busy lifestyles.
For more details, contact Jamie Rice at RTS Resource on +44 (0)1902 422282. jamie.rice@rts-resource.com. For market reports go to: http://www.foodmarketreports.com or log on to http://www.rts-resource.com
Defining the heart health market
This article analyses the European market for heart health food and drink (in and out of home consumption) comprising: fat spreads, healthy fats and oils, soya products, near/functional waters, nuts and seeds and other foods and beverages.
Functional ingredients used in the above include: plant sterols/stanol esters; psyllium, nuts and seeds, soya, dairy peptides, tea catechins, garlic and blueberries. But it is important to note that many functional products and their claimed benefits overlap. For example, arguably the primary health benefit of fibre is on digestion. However, additional claimed benefits are the reduction of cholesterol (cardiovascular) and reduced risk of developing bowel cancer (disease prevention). Likewise, the growing inclusion of omega-3s poses a similar problem. While they may benefit the heart and joints, they are primarily promoted as boosting mental acuity.
Therefore, in order to minimise confusion, we have categorised products and ingredients under their main promoted function.
Yet another complication is that there is an increasing number of products containing multiple wellness ingredients and claiming multiple functionality. Again, we have attempted to categorise and break their functions down as described above. To be included in our analysis, products must either overtly claim or infer a positive heart health benefit. Finally, "EU 15" refers to the 15 "original" members of the EU.